* C$ skids to lowest level in a week
* Canada sheds 44,500 jobs in July
* Bond prices lower across curve (Recasts)
By Frank Pingue
TORONTO, Aug 7 (Reuters) - Canada's dollar was pinned lower versus the greenback on Friday morning as weak Canadian jobs data soured investor risk appetite and pulled the currency to its lowest level in a week.
The slide in the currency followed a report that showed the Canadian economy shed 44,500 jobs in July, nearly three times the consensus forecast. [ID:nN07253705]
"Obviously we had a bit of data from Canada today, it was quite disappointing and I'm not surprised to see the Canadian dollar a bit weaker," said Steve Butler, director of foreign exchange trading at Scotia Capital.
The Canadian dollar fell as low as C$1.0865 to the U.S. dollar, or 92.04 U.S. cents, its lowest level since July 30, from C$1.0785 to the U.S. dollar, or 92.72 U.S. cents, shortly before the numbers came out.
The currency briefly recouped all those losses as investors moved back into riskier assets after U.S. jobs data showed employers cut fewer jobs in July than expected and the lowest number in any month since last August. [ID:nN06337602]
But the rebound was short-lived as the U.S. dollar began to react positively to supportive U.S. economic data after months of falling in the wake of favorable reports that only served to lessen its safe-haven appeal.
"We're going to have to take a step back today and decide whether or not good news and better data is going to start to mean better days for the U.S. dollar," Butler said.
"At some point that's got to change back to the way it was and the way it should be; good news and data in the U.S. should be good for the U.S. dollar and good news in Canada should be good news for the Canadian dollar."
At 9:35 a.m. (1335 GMT), the Canadian unit was at C$1.0797 to the U.S. dollar, or 92.62 U.S. cents, down from C$1.0767 to the U.S. dollar, or 92.88 U.S. cents, at Thursday's close.
Some Canadian data, such as retail and home sales, have shown the economy is healing, and the Bank of Canada and most private-sector economists say the economy will start to grow in the third quarter. The central bank projects 1.3 percent growth in the July-September period after three quarters of contraction.
BOND PRICES ALL LOWER
Canadian bond prices fell across the curve alongside the bigger U.S. Treasury market in the wake of the nonfarm payrolls report that hinted that the labor market in the United States is less impaired than previously thought.
The two-year Canadian bond was down 1 Canadian cent at C$99.07 to yield 1.461 percent, while the 10-year bond slipped 35 Canadian cents to C$101.30 to yield 3.591 percent.
The 30-year bond dropped 75 Canadian cents to C$115.50 to yield 4.064 percent. In the United States, the 30-year Treasury yielded 4.614 percent. (Editing by Peter Galloway)
